(Topic ID: 110193)

Does buying my first house mean the end of pinball?

By eggbert52

6 years ago


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  • 230 posts
  • 96 Pinsiders participating
  • Latest reply 6 years ago by rommy
  • Topic is favorited by 2 Pinsiders

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    There are 230 posts in this topic. You are on page 3 of 5.
    #101 6 years ago

    You make enough to have $3500 worth of play money each month and by buying a house, you'll be increasing your monthly expenses by $300 (leaving you with only $3200 a month play money) and you're wondering if your pinball days are done?

    I don't buy it.

    #102 6 years ago
    Quoted from dluth:

    Yeah, a huge amount is going into interest early on. This is why I'd direct that $3,500 excess you have each month into the mortgage above your regular payments. It would be handy if you have a redraw facility so that you can take this money out again in an emergency - I'm not sure how your mortgage is structured. But the principle is the same - get that sucker down as quickly as you can!

    This is bad advice unless you are paying a high interest rate.

    Think about it... you can earn way more than 5% with safe investments. You also can't really touch that money you pay down your mortgage with until the house is sold.

    #103 6 years ago
    Quoted from limelime20:

    After all that, you own a Acura TSX,??

    No, he doesn't own the TSX, the bank does.

    #104 6 years ago
    Quoted from eggbert52:

    So without setting up a two hour meeting with Dave Ramsey

    Set up the meeting with Dave Ramsey. Don't listen to Suz Orman.

    Get your car paid off. Make sure the house is no more than 25% of your gross(or net - I forget which) monthly income on a 15 yr(max) note, continue as much as you can with the 401K, and pay the rest of your bills each month. What is left after that is play money if that is what you want.

    And don't feel like you have to compete with some of the new Stern and B/W A list collections out there. You can get a lot of fun for a lot less money in most of the older games that are out there.

    Good luck with your new home and plan.

    #105 6 years ago
    Quoted from MikeO:

    No, he doesn't own the TSX, the bank does.

    Come on, dude. Owe and own are two different things. He owns it, and using finance and leverage responsibly is not a bad thing.

    #106 6 years ago

    If 2008 taught us anything it's only an asshole gets a 30 year fixed mortgage, finances a car & tries to play the market.

    A paid off house is essentially a young mans annuity that you can pass to your kids. What I'm saying is money not required to live is the same as money earned.

    Or you could be a sheep & leverage the roof your kids sleep under. 7% gains after 4% funds means your scrotum is on the line for 3%

    I'm far from wealthy but even I don't see value in 3% income on $300K if it means the kids have to live with grandma next time the market takes a dump.

    I was a loan officer for 7 years. Every realtor, title co, builder & broker went from snorting coke on a scarab to short sale within 18 mos. Everyone I know from those days lives a non leveraged life today.

    #107 6 years ago

    Buying a house (instead of renting) is no longer a financial no-brainer. We live in a pretty good school district in metro Atlanta, with a nice little town half a mile away. But Zillow tells me our house is worth 90% of what it was 10 years ago. And all that time we poured money into upgrades to really make it "our house" (light fixtures, new flooring, etc). As well as normal maintenance, lawn care, etc.. It's really been a terrible investment. So I respect people that want to rent. A house is not an appreciating asset.

    #108 6 years ago
    Quoted from PW79:

    Every realtor, title co, builder & broker went from snorting coke on a scarab to short sale within 18 mos.

    OK, you'll have to explain what a scarab is (in the coke-snorting context). The Google isn't helping me.

    #109 6 years ago
    Quoted from Bryan_Kelly:

    You make enough to have $3500 worth of play money each month and by buying a house, you'll be increasing your monthly expenses by $300 (leaving you with only $3200 a month play money) and you're wondering if your pinball days are done?
    I don't buy it.

    Me neither. I smell bullshit.

    #110 6 years ago
    Quoted from aalucero:

    This is the single dumbest thread I have read on pinside. First of all you are 45 and just now getting your first house second of all there may be a small few of us that are financial advisors but since math is the easiest thing to calculate take what you make subtract what your monthly obligations will be save some money aside buy whatever the hell you want. I see this thread as a way to brag about what you have or what you make. Personally I think you should have already bought your first house since you were making that kind of payment on rent during the perfect time to buy a home when it all came crashing down. You sound more like 25 than 45.

    I can certainly understand your point. I would have liked to have bought a house earlier but I am in sales and was transferred like 5 times in the last 12 years so it would have been more of a hassle to buy than to just rent. Also, I'm not married so I had the flexibility to just rent for a while and live in some pretty cool cities. In addition, I do tend to have some commitment issues and wasn't really sure where I wanted to buy a house.

    Finally, I didn't release my financial situation as a way to "brag" but more as a way to get the absolute best advice possible. If I lie about my situation then the advice I get is worthless.

    Hopefully that addresses your comments and makes you think of me as at least somewhat more mature than what you stated.

    #111 6 years ago

    Eggbert: (in Thurston Howell III's voice.)
    "I wonder what the pOOr people are doing to-- ehh, I don't really care!!!"
    eggbertsolo.jpg
    *guitar solo*
    "WidddledeedeeeeeeedeeeeEEEshaodadadooblieeeee!!!"

    Just teasing you Egg; congrats on winning life!

    #112 6 years ago
    Quoted from swampfire:

    OK, you'll have to explain what a scarab is (in the coke-snorting context). The Google isn't helping me.

    It's me showing my age lol

    Scarab was a big name in the 80's for "Miami Vice" boats.

    You know how Keenix is a word used for tissue but it's really a brand?

    Scarab is not what it used to be. Now days it's more Fountain, Donzi & etc.

    Beleive it or not some very spendy Hoosiers out here buy massive boats for a "lake" we have.

    Here is a pic, minus the 8 ball & smeared mascara lol

    image.jpg

    #113 6 years ago
    Quoted from aalucero:

    I see this thread as a way to brag about what you have or what you make. Personally I think you should have already bought your first house since you were making that kind of payment on rent during the perfect time to buy a home when it all came crashing down. You sound more like 25 than 45.

    What exactly was he bragging about? He bought a house before he turned 50.

    Are you upset because you're not doing as well financially as he is? I doubt he even knows who you are to consider that you'd be jealous? You came across quite judgmental and frustrated.

    #114 6 years ago
    Quoted from roc-noc:

    Maybe in Wisconsin but my property taxes alone are what you think you can survive on. Welcome to Illinois! $30K here is a reasonable number once the house is paid off and assuming you are not changing anything (remodeling or buying new furniture).

    yea, but he's in MI. That state is similar to ours. They are trying to get people to move there.

    #115 6 years ago
    Quoted from PW79:

    It's me showing my age lol
    Scarab was a big name in the 80's for "Miami Vice" boats. Now days it's more Fountain, Donzi & etc.

    image.jpg 73 KB

    Now your talking my second hobby language ! Hot summer weekends at Lake of the Ozarks !

    #116 6 years ago

    Atleast you capitalized it.
    Danke.

    #117 6 years ago

    dump the acura

    B M W

    -1
    #118 6 years ago

    My wife finished her residency in St. Louie. Hearing "Hoosier" as in Hillbilly was news, and initially, tough news, to me.
    Its funny ha ha but you guys over-use it.
    Signed,
    Someday,... Bobby Knight Vill Be Back.

    #119 6 years ago

    The only home buying tip I will share is tried and true...
    Buy the least expensive house in the most expensive neighborhood you can afford.

    #120 6 years ago

    And, also, this..
    Dont buy a house in Houston near Mike, former owner of Big Bang Bar 153.

    #121 6 years ago

    bmw is for dummies...buy a Lexus best value for money... And maybe just don't buy a house in Indy gryszzz? Honestly I wouldn't bother buying anything in fl unless you're in the Mia area... Real estate everywhere else in the state is horrible... We live in a different world than our parents, real estate is a tradable commodity and just like pins, no one wants a crappy title no one hs eve heard of.... Just keep trying to get that unicorn

    #122 6 years ago

    Screw a BMW, Screw the Acura. Get a big ol HEMI Challenger!

    #123 6 years ago

    P.s. For all you haters... Just bought my house first house last year... My realtor conservatively estimates I can profit 20% if I sell now... My account keeps bringing me 10% on my fiscal capital... Seems like a lot of people doing something wrong... A new house should never mean the end of luxury purchases if you know how to manage your money... So many people going in the wrong direction with this one!

    #124 6 years ago

    Your realtor will say anything to get the listing.

    After a few offers 20% becomes a 14% "take the offer" & that's me being generous. Ok well I will admit I don't know shit about your situation but I'm gonna act like an expert anyway lol

    They take 7% of your "profit", you will make 3% in concessions to the buyer & don't forget you paid 3% in fees to acquire the note in the first place & uncle same will take the final 1%. You will pay another 3% to close a loan on the next house too.

    Your amortization table is worse than a dog turd right now too. Your balance has gone down less than $99 this year. Multiply your 12 payments, subtract the $99 & continue to tell yourself mortgaged homeownership is legit.

    I don't think you've made any recent riches in real estate. He'll even the NOD/REO's are picked over by folks in the know long before the market gets in & Fannie/Freddie try's to make em owner occupied when possible.

    As they say, the deal of a lifetime pops up every week

    #125 6 years ago

    Hmm... Realtor fees are 3% and my realtor is a pretty close friend... I've been offered a price = 25%... I will get more...some markets are luxury markets, like mine... Some aren't, like the entire state of MO... I can sell my house for 20% profit any day of the week... Believe me or not... It's all about investment... I can tell you for sure if you own real estate in MO its a bad investment... Good point about amortization, oh wait, we deal in cash only... Poor fool...next?

    #126 6 years ago

    I was going to start another OT thread, but I think I'll just hijack this one. It seems like everyone who has ever worked for me has rental properties now. Have I missed out on a gold rush? All I remember about rental properties from growing up was mowing lawns, when I should have been at the arcade like a normal teenager. When I think of rentals, I think of endless painting and cat-piss-stained carpets.

    I read "Rich Dad, Poor Dad" and the book basically said "buy real estate and leverage yourself to buy more real estate". I was really tempted until the housing crash happened.

    #127 6 years ago

    (BTW, the best car for a pinhead is a 4-Runner with 99k miles on it. That's me.)

    #128 6 years ago
    Quoted from RavellevaR:

    Hmm... Realtor fees are 3% and my realtor is a pretty close friend... I've been offered a price = 25%... I will get more...some markets are luxury markets, like mine... Some aren't, like the entire state of MO... I can sell my house for 20% profit any day of the week... Believe me or not... It's all about investment... I can tell you for sure if you own real estate in MO its a bad investment... Good point about amortization, oh wait, we deal in cash only... Poor fool...next?

    Sell it then.

    #129 6 years ago

    But why would one leverage in Duluth ga? I mean, the nicest houses cost $200-$300k.... You have to understand what market you're dealing with.... In places like NYC, DC, MIA, SF you get $30/sqft per month... In GA you can rent a 5000 sqft home for like $750/month... Not worth it... If you have $50k in savings talk to an accountant/banker and see what sort of market based account they can set you up with... Deal with the bad years and welcome the good years, a fairly average account should net you roughly 10% (at least that's my experience over the last 10 years)... If you're in the $300k-$1.5m range of savings... Consider real estate in luxury markets (functions entirely different than regular real estate markets) should see gains of 3-5% per year and that's aside of gains from renting... Yeah, that market didn't lose much during the recession either... If you have $2m+ you have to figure out how to be a business man... And that involves bank accounts and real estate investments....

    #130 6 years ago

    Sell it then? Took me long enough to get this property... Sell your unicorn pin once you get it... Wait for a gem, acquire it, and sit on it until the time is right... I have no interest in letting go of something beautiful... I own a 100+ y/o home in Georgetown, DC... Completely renovated to my customization... Would you sell a HUO TZ or TAF or AFM beautifully restored?... Maybe at a certain point... But that time is not now! Only buy the best, that's sort of my point...

    #131 6 years ago
    Quoted from swampfire:

    Buying a house (instead of renting) is no longer a financial no-brainer. We live in a pretty good school district in metro Atlanta, with a nice little town half a mile away. But Zillow tells me our house is worth 90% of what it was 10 years ago. And all that time we poured money into upgrades to really make it "our house" (light fixtures, new flooring, etc). As well as normal maintenance, lawn care, etc.. It's really been a terrible investment. So I respect people that want to rent. A house is not an appreciating asset.

    You're right. It's not a no-brainer. It depends on your situation.

    Don't put too much stock into those Zillow estimates. It's a neat gimmick, but they're usually way off.

    #132 6 years ago

    Anyway, I'm actually a pretty simple man, and I've gotten lucky on some of my investments... Not trying to run anyone down... If you have the money, consider making real estate investments in the right market... If I followed my parents advice, I'd be stuck in some small town paying mortgage on a property that's underwater... If you can afford your current rent, have no wife or kids, consider investing in a property that will increase in value... Properties in random neighborhoods, in random towns, never seem to fit this bill no matter how nice they are... Some developer will just come along and develop something nicer... But in certain markets (luxury) land values will ALWAYS increase (just look at prices in places like Manhattan during the last recession, they never really dropped, just increased at a slower rate!)

    #133 6 years ago
    Quoted from RavellevaR:

    Sell it then? Took me long enough to get this property... Sell your unicorn pin once you get it... Wait for a gem, acquire it, and sit on it until the time is right... I have no interest in letting go of something beautiful... I own a 100+ y/o home in Georgetown, DC... Completely renovated to my customization... Would you sell a HUO TZ or TAF or AFM beautifully restored?... Maybe at a certain point... But that time is not now! Only buy the best, that's sort of my point...

    That was sort of my point that it is hard to profit off of a primary residence because if your home goes up and you sell, where are you going to live next since all the other homes in your area are higher also? You can profit by buying a fixer upper, though.

    You do generally do well by buying "the best" of real estate or a collectable. If pins do crash in value my T2 will be worth a lot less, but a HUO TZ would hold it's value because that is what a true collector would want and there are so few HUO available to purchase.

    Another way to invest in real estate is the boring way - REIT's
    https://advisors.vanguard.com/VGApp/iip/site/advisor/investments/productoverview?fundId=5123

    #134 6 years ago
    Quoted from PW79:

    Your realtor will say anything to get the listing.
    After a few offers 20% becomes a 14% "take the offer" & that's me being generous. Ok well I will admit I don't know shit about your situation but I'm gonna act like an expert anyway lol
    They take 7% of your "profit", you will make 3% in concessions to the buyer & don't forget you paid 3% in fees to acquire the note in the first place & uncle same will take the final 1%. You will pay another 3% to close a loan on the next house too.
    Your amortization table is worse than a dog turd right now too. Your balance has gone down less than $99 this year. Multiply your 12 payments, subtract the $99 & continue to tell yourself mortgaged homeownership is legit.
    I don't think you've made any recent riches in real estate. He'll even the NOD/REO's are picked over by folks in the know long before the market gets in & Fannie/Freddie try's to make em owner occupied when possible.
    As they say, the deal of a lifetime pops up every week

    Dude, you're clearly projecting and your math is way off.

    #135 6 years ago

    Question: How stupid would it be to buy some land and build a custom, small, energy efficient mini house on it, using all the latest stuff (solar panels, ground source heat pump, etc)

    It must have a shower and Internet though. Don't care about pins I keep those at my shop.

    #136 6 years ago

    Sorry, but this almost qualifies for the "dumbest questions asked on pinside" thread...

    $3500 excess discretionary cash each MONTH and you're really asking here if you need to give up a hobby that you can enter into with less than ONE MONTH of your excess mad money?

    Gimmeabreak

    #137 6 years ago

    Ben...I've been fascinated lately by "tiny houses" (100-200 square feet). And by extension, vintage campers around 16', made by companies like Airstream and Shasta and Scotty. No taxes, low utilities, it could be a cool way to live for a while. You could truly go into economic hibernation.

    #138 6 years ago
    Quoted from benheck:

    Question: How stupid would it be to buy some land and build a custom, small, energy efficient mini house on it, using all the latest stuff (solar panels, ground source heat pump, etc)
    It must have a shower and Internet though. Don't care about pins I keep those at my shop.

    Not that stupid really. Just have to dig into the building codes. Most area's do not allow the "mini houses" to be permanently placed. Most people get around that by building them on a large flatbed trailer.....so technically they are mobile.

    #139 6 years ago

    If energy efficiency is your goal, you don't need some "tiny house"... You can be zero net with any reasonable sized house 2000-3000 sqft as long as you use the latest technologies...

    #140 6 years ago

    Rocks. I would build something using lots of rocks.

    #141 6 years ago

    I think OP may be a bit nervous when it comes to hidden costs with a home. Sure, you will have some maintenance issues...New roof, hot water tank, boiler or furnace etc. However a surplus of $3500 each month is a bit ludicrous. I was happy using one check for the mortgage/bills and the other for savings/fun stuff. I do however see this said profit now after I paid off my mortgage and trust me...you will be more then fine. Imagine if you ever pay of your mortgage. That is more then 5k a month and 60k plus a year bring home. That is like 1200 cleared a week...think about it.

    -1
    #142 6 years ago
    Quoted from CaptainNeo:

    That state is similar to ours

    Nope, not too much similar……...

    #143 6 years ago

    I just don't agree with the title "the end of pinball"

    $3500 buys me 3 or 4 decent pins with money left over for upgrades. If I had only 2 bucks left that would buy me some on location pinball. Third world problems, I guess.

    #144 6 years ago

    Side note, that Mr Moustache website is bad ass!

    #145 6 years ago
    Quoted from RavellevaR:

    And maybe just don't buy a house in Indy gryszzz?

    HOP Jr.,....
    My name is spelled with a capital G motherfucker.
    Take your money, your investments, and your (lol) 1st house, and go back to rim jobs and RGP.

    #146 6 years ago

    Well that escalated quickly!

    #147 6 years ago

    If the banks are offering sub 5%... I say bag it up! Give me all the 5% money you can stand. Hell, I'll pull up a semi and get serious. If interest is that low and you can do better than 5%, then I would pay off mortgage as slowly as possible and use excess cash as investment in rental property. No need to hurry paying off the loan if you can do better than 5%.

    #148 6 years ago

    I'm not sure this thread has been good for me. That MrMoustache site, and people like Rommy have give some non-emotional reasons why paying off the house is a bad idea, which is what my plan was in a couple of months..

    #149 6 years ago

    Let's just say you avoided PMI by putting 20% down and have a $250,000 at 30 years at 4%. The interest over the course of this loan is $180,000 bringing your total to $430,000 after 30. Now IF your house appreciated to this amount when the term ends you break even. Now if you halved this by double payments and the same applies you would pay $82,000 in interst. Waiting that the extra 15 years in the same place after it is payed off would net you $100,000 making the total $330,000. Triple the funds... 7 years $58,000 interest $308,000 total after 30 $122,000 savings. Now to be fair I understand you can write off around half your interest but you never truly benefit. It is nice to get a $3000 check in Feb but you paid $8000 in taxes over the course of the year. It just doesn't seem right to be paying any interest to anybody.

    If you max out all your retirement venues (401, investments, etc)and have the extra coin I say pay it off. Why should the banks leech off of your hard earned money as well as uncle Sam.

    Everyone is going to have a different opinion and I am fine with it. For me it worked great. If I could change anything I maybe could have cut more corners and did it in five years.

    #150 6 years ago
    Quoted from benheck:

    Question: How stupid would it be to buy some land and build a custom, small, energy efficient mini house on it, using all the latest stuff (solar panels, ground source heat pump, etc)
    It must have a shower and Internet though. Don't care about pins I keep those at my shop.

    i think these are really neat too. i think the re-purposed/converted sea can houses are cool as you just add another one as your needs require, but i think you have to be very rural to do alot of these ideas.

    There are 230 posts in this topic. You are on page 3 of 5.

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